BIR Urges Recycling Sector Participation as EU Introduces New Steel Trade Regulation

The Bureau of International Recycling (BIR) has called on recycling industry stakeholders to engage in a European Commission consultation on new steel import rules following the European Union’s formal adoption of the EU Steel Regulation. The regulation, which takes effect on July 1, 2026, establishes a new framework for managing steel imports amid concerns over global steel overcapacity and replaces the current EU steel safeguard measures that expire on June 30.

BIR, which represents the global recycling industry, said the new trade framework could have significant implications not only for steel producers and importers but also for secondary raw material markets. Recycled steel and ferrous scrap are internationally traded commodities and remain essential feedstocks for electric arc furnace (EAF) steel production, a key route for lower-emission steelmaking.

The regulation forms part of the European Union’s Steel and Metals Action Plan and introduces a revised tariff-rate quota (TRQ) system designed to regulate steel imports entering the European market. Under the new framework, annual duty-free quota volumes will be set at 18.3 million tonnes, representing a reduction of approximately 47% compared with quota levels available under the previous safeguard system in 2024.

Imports exceeding the allocated quota will face a 50% tariff, doubling the 25% out-of-quota duty applied under the existing safeguard regime. Market participants are closely assessing how the tighter import restrictions could affect steel trade flows, pricing dynamics, and raw material demand across the European steel supply chain.

A key feature of the regulation is the introduction of a “melt and pour” origin requirement. The measure is intended to improve traceability by identifying the country where steel was originally melted and poured, helping authorities verify product origin and strengthen enforcement efforts.

The European Commission is expected to publish implementing rules by August 31, 2026, outlining the documentation importers must provide to demonstrate compliance with the new origin verification requirements.

In preparation for the implementation process, the Commission launched a public consultation running from June 4 to July 2, 2026. The consultation invites steel producers, importers, traders, end users, industry associations, and other stakeholders to provide input on practical methods for verifying melt-and-pour origin information.

BIR said the consultation presents an important opportunity for recyclers, ferrous scrap processors, traders, and recycled steel producers to contribute technical expertise and ensure that any evidentiary requirements remain workable for companies operating within global recycling and scrap trading markets.

The organization emphasized that trade policy decisions affecting steel markets can have broader consequences for circular economy value chains. Changes to import quotas, origin verification procedures, and market access conditions may alter global trade flows for recycled steel and scrap, potentially affecting investment decisions and commercial activity throughout the recycling sector.

BIR stated that it will continue working with its European members and industry partners through Recycling Europe to engage with EU institutions during the implementation process. The organization reiterated its longstanding support for open and transparent global markets for recycled materials while recognizing the need for effective trade regulation.

The recycling industry has increasingly highlighted the role of secondary raw materials in supporting industrial competitiveness, resource security, and decarbonization objectives. Electric arc furnace steelmaking, which relies heavily on recycled steel feedstock, is expected to play an expanding role in Europe's transition toward lower-carbon steel production.

BIR said future trade measures should support, rather than hinder, the development of circular value chains and the efficient movement of recycled materials across international markets.

Source: BIR

SUNSHINE Spotlight: The EU’s new Steel Regulation introduces stricter import quotas and origin verification requirements that could reshape steel trade flows, making recycler participation in upcoming implementation consultations increasingly important.